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Question: What is the most important negotiating
skill that you have learned as an entrepreneur?

Question by: Robert

Listen to What's (Not) Said

"Few people truly listen to what is being said, because most
of the time they're too busy formulating what it is they want to
say themselves. You can massively increase your negotiation
success if you listen to what's really being said. Also, read
between the lines -- the objections, the hurdles, the issues --
and address those, instead of only responding to what you think
or assume is being said."

"Be confident, and don’t sell yourself short. Your idea
represents you, and if your confidence is low, it makes your idea
appear weak. That being said, overconfidence has a negative
effect, so you need to find a balance between confidence and
acknowledging a good deal."

"One of the biggest keys to a successful negotiation is to
use objective, third-party criteria to resolve differences with
the other party. If you can point to objective third-party
sources as the basis for your position, the other party is much
more likely to agree to your position."

"When negotiating, never name the first price. Remember,
negotiation is all about finding out where the other party is
relative to where you are. Setting the first price is like
shooting in the dark. If you let them set the first price, you
will keep yourself from coming in with a drastically underpriced
offer. I'm always surprised how common this mistake is among
fledging entrepreneurs."

"The most important thing to do when you're negotiating is to
make sure you create a win-win relationship with your client.
This way, they don't feel cheated after the deal is done. You
want them to think that it was a fair deal and they benefited by
it -- if you want to have a long term relationship with
them."

"I use silence when I negotiate and find it is one of the
best tools. Often times, your partner will fill the silence with
extra information or think you're playing hardball and suddenly
drop their price or terms without you even asking. You can learn
a lot about a person by how they fill in the silence."

"This concept is counterintuitive and perhaps even
antagonistic to some, but there is a clear advantage to stating
what you want on your terms and then emotionally removing
yourself from the outcome. Our tendency to “want” creates
emotional and clouded judgement. The more something is desired,
the more we compromise when it may not be necessary."

"You should never enter a negotiation believing that there is
a fixed "pie" to be split, and that one side will win the bigger
slice. You and your counterpart will care about different aspects
of the negotiation. Listen to the other and understand their
priorities, then do your best to defer on those negotiating
points that are more critical to your partner."

"In negotiations, I always ask what the other side wants
first. I've gone into so many negotiations thinking that I know
what the other side wants, and being completely wrong. Always be
the first to ask what the other side wants out of the deal, then
work your magic to make that happen. Close the deal and go
celebrate!"

"I didn't start making a lot of money until I learned the
value of walking away from a deal. If you aren't happy with the
money or the terms, walk away. That may sound fundamental, but
when you first get started, you're so hungry that you get caught
up in bad deals and you miss the good ones!"

"Without options, it is not much of a negotiation; you will
have to concede, no matter what the other party decides. With
options, you have a clear choice to accept or decline -- and
there is no greater advantage in a negotiation."

"Use the word "will" instead of "would" when negotiating.
Phrase your sentences and responses as if the partnership you
want is already in place. A sentence outlining "what we are going
to do for you" sounds a lot more concrete than "what we could do
for you." It implies you already have the plan and know how to
implement it. Get them talking like the deal is already done, and
it will be."

"The most common positional bargaining that people do is to
start at some arbitrary dollar amount, and have your negotiating
partner counter-propose another dollar amount, and so forth. That
is not a good way to negotiate. Instead, focus on principles.
Present research and comparable data to your negotiating partner,
agree on the principles, then jointly agree on price."

"Too many people back down from what they truly want in fear
that they will sound too needy and/or aggressive. The truth is,
you'll never get what you want unless you show everyone how much
you want it."

The Young
Entrepreneur Council (YEC) is an invite-only nonprofit
organization comprised of the world's most promising young
entrepreneurs. The YEC leads #FixYoungAmerica, a solutions-based movement that
aims to end youth unemployment and put young Americans back to
work.